Nvidia Rebound Pulls Up ETFs SPY, MAGS, QQQ

Broad stock indexes rose for the first day in three thanks to investors resuming their enthusiasm for Nvidia Corp., which bounced back with a 7% gain after briefly crossing into correction territory yesterday.

The S&P 500, as measured by the S&P 500 ETF Trust (SPY), added 0.4%. ETFs with a narrow tech focus fared even better: The Invesco QQQ Trust (QQQ), which tracks a weighted index of the top 100 Nasdaq stocks, added 1.1%; the Technology Select Sector SPDR Fund (XLK), which has a 23% allocation in Microsoft and 20% in Nvidia, added 1.8%.

Broad bond ETFs also inched higher or held their ground as yields were little changed. The iShares 20+ Year Treasury Bond ETF (TLT) added 0.2% and the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) was little changed.

Digital currencies' recent drubbings reversed, making big leaps today and pulling spot bitcoin ETFs higher. Bitcoin neared $62,000, adding 5.6% over the past 24 hours. The biggest spot bitcoin ETF, the $19.9 billion Blackrock Bitcoin Trust (IBIT) surged 4.6%. It's still lost 14% over the past month. The second-largest, the $18.1 billion Grayscale Bitcoin Trust ETF (GBTC), posted a nearly identical gain today.

Nvidia Corp.’s retracing today of some of its losses from the past few days is underscoring the reality that the stock market has largely been carried by a gigantic chipmaker at the center of the surging artificial intelligence market.

Nvidia’s 6% rally in mid-day trading Tuesday isn’t enough to erase all of its losses from the past five trading days, especially considering it entered correction territory yesterday. Still, anyone paying attention over the past five years, when the stock gained more than 300-fold, is likely willing to stay seated for such a relatively slight decline.

If nothing else, today’s market activity puts on display the opportunities to live and die by the sword of betting big for or against Nvidia.

Through the first three hours of trading Tuesday, the T-Rex 2X Long Nvidia Daily Target ETF (NVDX) was the biggest gainer tracked by etf.com, up 11%.

NVDX Intraday

Biggest loser? You guessed it, the T-Rex 2X Inverse Nvidia Daily Target ETF (NVDQ) was down 11.2%.

NVDQ Intraday

Technology and semiconductor ETFs are rebounding Tuesday after Nvidia's slide on Monday dragged down funds with the chipmaker as a major holding. 

The ProShares Ultra Semiconductors (USD) leapt more than 3.5% to kick off the trading day while the Strive U.S. Semiconductor ETF (SHOC) rose a slight 0.2%. Nvidia represents more than 25% of the holdings in both semiconductor ETFs.

Tech regained some of yesterday's losses, as measured by the 1.4% drop in the Nasdaq. The Technology Select Sector SPDR Fund (XLK), which includes a nearly 6% allocation to Nvidia, rose more than 1%. Nvidia itself jumped 3.2% this morning after dropping three days straight.

Across the broader market, the S&P 500 and the Nasdaq were in the green in early trading. The SPDR S&P 500 ETF Trust (SPY) rose just over a tenth of a percentage point while the Invesco QQQ Trust (QQQ), which tracks a weighted index of 100 Nasdaq stocks, added 0.6%. The Dow was in the red to kick off the Tuesday trading session. The SPDR Dow Jones Industrial Average ETF Trust (DIA) slid by a quarter of a percentage point.